BALANCE SHEETSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation Account

AssetsCash and due from banks (Note 3)
Securities (Notes 4 and 19)
Loans (Note 5)
Miscellaneous assets (Note 6)
Premises and equipment (Note 7)
Tangible fixed assets (Note 7)
Intangible fixed assets (Note 7)
Deferred charges on bonds and notes (Note 8)
Allowance for possible loan losses (Note 9)
Total assets

Liabilities and equity
Liabilities
Bonds and notes (Note 10)
Borrowings (Note 11)
Miscellaneous liabilities (Note 12)
Reserve for bonus payments
Reserve for employee retirement benefits (Note 13)
Total liabilities

\

\

\

EquityCapital:Capital attributable to the Overseas Economic Cooperation Account
Retained earnings:
Reserve attributable to the Overseas Economic Cooperation Account (Note 16)
Accumulated deficit
Total equity
Total liabilities and equity\

Net assets
Capital:Capital attributable to the Overseas Economic Cooperation Account
Retained earnings:
Other retained earnings
Reserve attributable to the Overseas Economic Cooperation Account (Note 16)
Accumulated deficit
Total stockholders' equity
Net deferred losses on hedges
Total valuation differences and translation adjustments
Total net assets
Total liabilities and net assets
See accompanying "Notes to Financial Statements" which are an integral part of these statements.

\

In millions of yen

In millions of yen

In millions of U.S.dollars

March 31, 2007

March 31, 2006

March 31, 2007

68,258 \109,275
10,940,343
62,913
6,603
1,334(102,897)
11,085,830 \

18,730 $119,135
10,943,642
70,8766,972
3(125,156)
11,034,203 $578
926
92,676
533
56
11
(872)
93,908In millions of yen

In millions of yen

In millions of U.S.dollars

March 31, 2007

March 31, 2006

March 31, 2007

3,714,803
14,105390
6,148
3,735,446\

10,0004,020,220
17,145387
6,259
4,054,013$

31,468120
352
31,643-

7,065,644--

111,324(196,778)(85,454)
6,980,190
11,034,203 $-\

7,231,508-

61,258166,062(47,187)
118,875
7,350,383
7,350,383
11,085,830 \

-

1,407
(400)
1,007
62,26562,26593,908$STATEMENTS OF OPERATIONSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIncomeInterest income
Interest on loans
Interest and dividend income on securities
Interest on due from banks
Fees and Commissions
Other operating income
Foreign exchange gains
Other ordinary income
Grant from general account (Note 15)
Reversal pf allowance for possible loan losses
Recovery of written-off claims
Profits on sales of premises and equipment
Profits on sales of ｔangible fixed assets
Total income
Expenses
Interest expenses
Interest on bonds and notes
Interest on borrowings
Fees and Commissions
Other operating expenses
OthersGeneral and administrative expenses
Other ordinary expenses
Write-off of equities, securities, etc.
Others
Losses on disposal of premises and equipment
Losses on disposal of ｔangible fixed assets
Total expenses
Net income

In millions of yen

In millions of yen

In millions of U.S.dollars

FY 2006

FY 2005

FY 2006\\

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

246,837
240,025
6,781
29
560
23
23
157
30,00022,259822
4300,665
81,141
183
80,957
3,874
10
10
9,773
1,497
1,481
16
37
96,336204,329\\

255,196
249,467
5,728
0
686
145
145
163
30,00043,802824
4330,822
89,609614
88,995
2,657
17
17
8,495
218
217
1
6
101,005
229,816

$

$

2,091
2,033
58
0
5
0
0
1
254
189
7
0
2,547
687
1
686
33
0
0
83
13
13
0
0
816
1,731

STATEMENTS OF CASH FLOWSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountCash flows from operating activities
Net income
Depreciation and amortization
Decrease in allowance for possible loan losses
Inecrease in reserve for bonus payments
Decrease in reserve for employee retirement benefits
Interest income
Interest expenses
Net loss on securities
Foreign exchange gain
Net loss on sales of premises and equipment
Net loss on sales of tangible fixed assets
Net decrease (increase) in loans
Net decrease in bonds and notes
Net decrease in borrowings
Net decrease in due from banks (excluding cash equivalents)
Interest received
Interest paid
Others, net
Net cash used in operating activities
Cash flows from investing activities
Purchases of securities
Sales of securities
Purchases of premises and equipment
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Proceeds from sales of premises and equipment
Proceeds from sales of tangible fixed assets
Net cash provided by investing activities
Cash flows from financing activities
Proceeds from issuance of capital stocks from government
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
See accompanying "Notes to Financial Statements" which are an integral part of these statements.

\\

In millions of yen

In millions of yen

In millions of U.S.dollars

FY 2006

FY 2005

FY 2006

204,329 \651(22,259)
2(111)(246,837)
81,141
1,436
(33)
33
3,298
(10,000)(305,417)
186
253,676(83,452)(730)(124,086)

229,816 $442(57,354)22(305)(255,196)
89,609174(159)
2(202,849)(15,000)(180,238)
18,968261,342(90,024)(215)(200,965)

(135)
8,443
(273)
(116)
6
7,925

(111)
689
(270)
16
323

(1)
72
(3)
(1)
0
67

165,864
165,864049,703
17,86567,569174,400
174,400
0(26,241)
44,106
17,865

1,405
1,405
0
421
151
572

\

$

1,731
6
(189)
0
(1)
(2,091)
687
12
(0)
0
28
(85)
(2,587)
2
2,149
(707)
(6)
(1,051)STATEMENTS OF CHANGES IN NET ASSETSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountFor the year ended March 31,2007(In millions of yen)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalOther retained earnings
Capitalattributable toReservetheattributable to theOverseas
Overseas
Accumulated
Economic
deficit
Economic
Cooperation
Cooperation
Account
Account

Total
stockholders'equityTotal
retainedearnings

Net deferredlosses on hedges

Total valuationdifferences andtranslation
adjustments

Total net assets

7,065,644

111,324(196,778)(85,454)

6,980,190--

6,980,190

Proceeds from issuance of capital stocks
attributable to the Overseas Economic
Cooperation Account

165,864---

165,864--

165,864

Transfer to reserve attributable to theOverseas Economic Cooperation Accountfrom accumulated deficit-

54,737(54,737)

-

-

-

-

-

Net income--

204,329

204,329

204,329--

204,329

Net changes in the items other thanstockholders' equity

-

-

-

-

-

-

-

-

165,864

54,737

149,591

204,329

370,193--

370,193

7,231,508

166,062(47,187)

118,875

7,350,383--

7,350,383

Balance at March 31, 2006

Changes during the accounting period

Net changes during the accounting period

Balance at March 31, 2007

STATEMENTS OF CHANGES IN NET ASSETSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountFor the year ended March 31,2007(In millions of U.S. dollars)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalOther retained earnings
Capitalattributable toReservetheattributable to theOverseas
Overseas
Accumulated
Economic
deficit
Economic
Cooperation
Cooperation
Account
Account

Total
stockholders'equityTotal
retainedearnings

Net deferredlosses on hedges

Total valuationdifferences andtranslation
adjustments

Total net assets

59,853943(1,667)(724)

59,129--59,129Proceeds from issuance of capital stocks
attributable to the Overseas Economic
Cooperation Account

1,405

-

-

-

1,405

-

-

1,405

Transfer to reserve attributable to theOverseas Economic Cooperation Accountfrom accumulated deficit

-

464

(464)

-

-

-

-

-

Net income

-

-

1,731

1,731

1,731

-

-

1,731

Net changes in the items other thanstockholders' equity

-

-

-

-

-

-

-

-

Net changes during the accounting period

1,405

464

1,267

1,731

3,136

-

-

3,136

Balance at March 31, 2007

61,258

1,407

(400)

1,007

62,265--62,265

Balance at March 31, 2006

Changes during the accounting period

STATEMENTS OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIn millions of yen

Balance at March 31, 2005

Capitalattributable to
the Overseas
Economic
Cooperation
Account

Reserve
attributable to
the Overseas
Economic
Cooperation
Account

Accumulated
deficit

Total Equity

\

\

\

\

6,891,244

85,490(400,761)

6,575,973

Transfer from net
earnings accounted
under the JBIC Law toreserve-

25,833(25,833)-

Issuance of capital from
Government

174,400--

174,400--

229,816

229,816

Net income
Balance at March 31, 2006\

7,065,644\

111,324\(196,778)\

6,980,190

Appropriations:
Transfer from net
earnings accounted
under the JBIC Law toreserve-

54,737(54,737)

-

Total

\

-

\

54,737\(54,737)\-

UnappropriatedAccumulated deficit

\

-

\

-

\

(251,516)\-

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

NOTES TO FINANCIAL STATEMENTS
JAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation Account

1. Basis of presentation
The accompanying financial statements have been prepared from the accounts maintained by Japan Bank forInternational Cooperation ("JBIC" or the "Bank") in accordance with the provisions set forth in conformity withaccounting principles and practices generally accepted in Japan, which are different in certain respects as to applicationand disclosure requirements from International Financial Reporting Standards.
The Bank’s accounts are separated into the International Financial Account and the Overseas Economic Cooperation
Account as required under Article 41 of the Japan Bank for International Cooperation Law ("JBIC Law") whereby theaccounting shall be separated according to the categories of international financial operations and overseas economic
cooperation operations and be recorded by establishing a separate account for each operation. In separating the accounts,transactions directly related to either of the operations are attributed to the account for these operations and overhead
expenses and others are allocated to both of the accounts in accordance with certain pre-defined allocation rate.
Consolidated financial statements are not prepared since JBIC has no subsidiaries.
The amounts indicated in millions of yen are rounded down by omitting figures less than one million. Totals may
therefore not add up exactly because of such omission.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥118.05=$1.00,
the exchange rate as of March 31, 2007, has been used in translation. The presentation of such amounts is not intended to
imply that Japanese yen have been or could be readily converted, realized or settled into U.S. dollars at that rate or any
other rate.

2. Significant accounting policies(a)Cash and cash equivalents"Cash and cash equivalents" as stated in the statements of cash flows consists of cash on hand and due from Bank ofJapan included in "Cash and due from banks" in the balance sheets.
(b)

Securities
All securities are classified as "Available-for-sale securities" which have no market value and are carried at cost basedon the moving average method.
(c)Foreign currency translation and revaluation method
JBIC maintains its accounting record in Japanese yen. Assets and liabilities denominated in foreign currencies aretranslated into Japanese yen at the market exchange rate prevailing at the fiscal year end.
(d)Depreciation basis for fixed assets (premises and equipment)(i) Tangible fixed assets
Tangible fixed assets are depreciated under the declining balance basis over their useful economic lives except
for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciated under thestraight-line method, and the applicable share of estimated annual depreciation costs for the fiscal year isrecorded based on the following range of useful lives.
The principal estimated useful economic lives are as follows:
Buildings: 38 years to 50 years
Equipment: 2 years to 20 years(ii) Intangible fixed assets
Amortization of intangible fixed assets is computed by the straight-line method. Software used by JBIC isamortized over its useful life (5 years).

(e)

Method of amortization for deferred charges
Until the previous fiscal year, discounts and premiums on bonds and notes had been separately capitalized andamortized under the straight-line method over the terms of redemption. However, in accordance with the partial revisionof "Accounting Standards for Financial Instruments" as of August 11, 2006 (the Accounting Standards Board of Japan("ASBJ") Statement No.10), which should be applied from the fiscal period ending upon or after its public announcement,
JBIC adopted the revised accounting standard effective this fiscal period, and Bonds and notes were stated at amortizedcost (the straight line method). This accounting change had no material impact on the financial statements.
Discounts on bonds and notes recorded on the balance sheet as of March 31, 2006 are amortized under the straight-line
method over the terms of the bonds and notes by applying the previous accounting method and the unamortized balance isdirectly deducted from Bonds and notes, based on the tentative measure stipulated in the "Tentative Solution on
Accounting for Deferred Assets" (ASBJ Report No.19, August 11, 2006).

(f)Change in presentation on balance sheets
The appendix forms of "Banking Law Enforcement Regulations" (Ministry of Finance Ordinance No.10, 1982) have beenrevised by the "Cabinet Office Ordinance to Amend Part of Detailed Enforcement Regulations on Mutual Loan Business
Law and Banking Law" (Cabinet Office Ordinance No.60, April 28, 2006). In accordance with the application of the revised"Banking Law Enforcement Regulations" effective this fiscal period, presentation of account items has been changed asfollows:(i) "Reserve attributable to the Overseas Economic Cooperation Account" and "Accumulated deficit" which had been
included in "Retained earnings" was presented as "Reserve attributable to the Overseas Economic Cooperation
Account" and "Accumulated deficit" in "Other retained earnings", respectively.
(ii) "Premises and equipment" was divided into "Tangible fixed assets," "Intangible fixed assets" and "Miscellaneous
assets."(iii) "Software" was reclassified from "Miscellaneous assets" to "Intangible fixed assets."(g)
Change in presentation on cash flows
Former "Net loss (gain) on sales of premises and equipment" is presented as "Net loss (gain) on sales of tangible fixed
assets" following the change in description of former "Premises and equipment" on the balance sheet into "Tangible fixed
assets," "Intangible fixed assets" and others.
Former "Expenditures on premises and equipment" is presented as "Purchases of tangible fixed assets" and others, andformer "Proceeds from sales of premises and equipment" is presented as "Proceeds from sales of tangible fixed assets" andothers.
(h)Allowance for possible loan losses
The allowance for claims on debtors who are legally bankrupt ("Bankrupt borrowers") or substantially bankrupt("Substantially bankrupt borrowers") is provided based on the outstanding balance after the write-offs described in Note 5(i) and the deductions of the amount expected to be collected through the disposal of collateral and the execution ofguarantees.
The allowance for claims on debtors who are not legally bankrupt but are likely to become bankrupt ("Potentiallybankrupt borrowers") is provided based on an assessment of the overall solvency of the debtors after deducting theamount expected to be collected through the disposal of collateral and the execution of guarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers and Potentiallybankrupt borrowers is provided primarily based on the default rate, which is calculated based on the actual defaults
during a certain period in the past.
The allowance for possible losses on specific overseas loans is provided based on the expected loss amount taking into
consideration the political and economic situations of these countries.
All claims are assessed initially by the operational departments and secondly by risk evaluation departments based oninternal rules for self-assessment of asset quality. The internal audit department, which is independent from theoperational departments, reviews these self-assessments, and the allowance is provided based on the results of theassessment.
(i)Reserve for bonus payments
Reserve for bonus payments is calculated and provided for based on estimated amounts of future payments
attributable to the services that have been rendered by employees to the date of the balance sheet. Reserve for bonus
payments to executive directors is included in the account.
(j)

Reserve for employee retirement benefits
Reserve for employee retirement benefits represents the future payment for pension and retirement benefits toemployees and executive directors, and is accrued based on the projected benefit obligations and the estimated pension
plan assets at the fiscal period end.
The actuarial gain or loss is recognized in the year in which it arises.

(k)

Lease transactions
Finance leases that do not involve the transfer of ownership to the lessee at the end of the lease term are accounted foras an operating lease.
(l)Consumption taxes
Consumption taxes, including local consumption tax, are excluded from the transaction amounts.

(m) Significant changes in accounting policies
In accordance with newly effective Accounting Standards Board Statement No.5 "Accounting Standards for
Presentation of Net Assets on Balance Sheet" (December 9, 2005) and Accounting Standards Board Guidance No.8
"Guidance on Accounting Standards for Presentation of Net Assets on Balance Sheet" (December 9, 2005), "Total equity"
was renamed as "Net assets" and divided into "Stockholders’ equity" and "Valuation differences and translation ofadjustment". The amount corresponding to conventional "Total equity" was ¥7,350,383 million at the balance sheet date.
Net Assets portion of the financial statements are presented in accordance with revised "Ordinance Regarding
Financial Statements.""Practical Solution on Investors’ Accounting for Limited-Liability Partnership and Limited-Liability Companies"(Practical Issues Task Force No.21, issued on September 8, 2006) is applicable for the fiscal period ending on or after
September 8, 2006, the announcement date, and JBIC applied the new accounting pronouncement. This accountingchange had no material impact on the financial statements.

3. Cash and cash equivalents
The reconciliation between the balance of cash and cash equivalents at the end of each fiscal year and the amount ofcash and due from banks reported in the balance sheets as of March 31, 2007, and 2006 were as follows:
March 31, 2007
（In millionsof yen）¥
Cash and due from banks
Due from banks (*)
Cash and cash equivalents

March 31, 2006
（In millionsof yen）¥

68,258(689)
67,569¥¥March 31, 2007
(In millions of
U. S. dollars)$

18,730(864)
17,865

$

578
(6)
572

(*) Excluding Due from Bank of Japan

4. Securities
Securities as of March 31, 2007 and 2006 were as follows:
March 31, 2007
（In millionsof yen）¥
EquityOther securities¥

March 31, 2006
（In millionsof yen）¥

107,996
1,279
109,275¥

March 31, 2007
(In millions of
U. S. dollars)$

117,858
1,277
119,135

$

915
11
926

5. Loans
All of loans are loans on deeds. The amounts reported in the balance sheets as of March 31, 2007 were 2006 are as
follows:
March 31, 2007
（In millionsof yen）¥
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans¥

March 31, 2006
（In millionsof yen）¥

76,876
185,191
262,068¥

March 31, 2007
(In millions of
U. S. dollars)$

96,998
184,691
281,689

$

651
1,569
2,220

(a)

"Bankrupt loans" refer to loans, after write-offs, on which accrued interest income is not recognized as there issubstantial doubt about the ultimate collectability of either principal or interest because they are past due for aconsiderable period of time or for other reasons, and to borrowers who fall into the following categories:- who have begun bankruptcy, settlement, reorganization, winding-up or special liquidation proceedings under the
Bankruptcy Law, the Corporate Reorganization Law, the Civil Rehabilitation Law, the Commercial Code, theCorporate Law or other similar laws of Japan- who have had their transactions with the promissory note clearinghouse suspended, or- who have begun similar proceedings under any foreign law(b)"Non-accrual loans" are loans on which accrued interest income is not recognized, excluding loans on which interest
payments are deferred in order to support the borrowers’ recovery from financial difficulties.

(c)"Past due loans (3 months or more)" are loans whose principal or interest payment is past due for three months or
more, and which do not fall under the category of "Bankrupt loans" and "Non- accrual loans."(d)"Restructured loans" are loans whose repayment terms and conditions have been amended in favor of the borrowers(e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, the extension ofprincipal repayments or renunciation of claims) in order to support the borrowers’ recovery from financial
difficulties, and which do not fall under the category of "Bankrupt loans," "Non-accrual loans" and "Past due loans (3months or more)."(e)

The amounts of Loans indicated in the table above are the gross amounts prior to deduction of allowance for(f)possible loan losses.
In the event that a debtor country encounters temporary payment difficulties and requests debt rescheduling withrespect to external public debt (whose creditors are Sovereigns, Trade Insurance Institutions and Export Credit
Institutions, etc.) due to an unfavorable balance of international payment, meetings of creditor countries (the "Paris
Club") would be held to discuss debt relief measures (rescheduling). When creditor countries agree on debt relief
measures, debt-rescheduling agreements between the creditors and a debtor are agreed. Under such temporary
liquidity assistance, the debtor carries out Economic Restructuring Program that was agreed with the International
Monetary Fund ("IMF") and continues to make repayments of the debt. The principal amount of loans for which
JBIC has agreed to provide debt relief pursuant to the Paris Club agreements is as follows:
March 31, 2007
（In millionsof yen）¥
Overseas Economic Cooperation AccountMarch 31, 2006
（In millionsof yen）¥

1,246,893

March 31, 2007
(In millions of
U. S. dollars)$

1,262,313

10,562In terms of repayment probability of the loans rescheduled in the Paris Club, their nature as public debt, unlike
loans provided by private financial institutions, provides an asset securing mechanism under such an internationalframework. Nonetheless, in order to facilitate comparison with private financial institutions, JBIC classifies thoseloans to borrowers classified under the self assessment as "Watchlisted" (but not "Past due loans (3 months ormore)"), that were rescheduled under the Paris Club as "Restructured loans." The amount of such loans, included in"Restructured loans" in the above table, is ¥185,191 million ($1,569 million) of which ¥101,267 million ($858
million) represents original principal attributable to the Overseas Economic Cooperation Account as of March 31,
2007, and ¥184,691 million of which ¥96,407 million represents original principal as of March 31, 2006.
(g)Upon special request, major creditor countries, including Japan, agreed at the Paris Club to offer grace period("Moratorium") for countries affected by the Sumatra Earthquake and India Tsunami in December 2004, in order tosupport their reconstruction and recovery. During this Moratorium period creditor countries will not expect any debt
payment on the due date up to December 31, 2005, and will reschedule the repayment period of deferred debts for 5
years including a 1 year grace period.
As of the end of March 2007, of the affected countries, Indonesia and Sri Lanka had requested the Paris Club for
the Moratorium. The amounts rescheduled repayment period for affected countries who requested the Moratorium
were ¥144,968 million ($1,228 million) in the Overseas Economic Cooperation Account.
Loans related to this Moratorium are not included in the loans described in (a) to (d) above, since lending terms
has been modified based on an international agreement under this Moratorium to offer a grace period in order tosupport reconstruction and recovery of affected countries, and is therefore irrelevant to their debt-repayment ability.

(h)

As JBIC's debtors mainly require long-term loans, JBIC generally enters into commitment line contracts with these
debtors. JBIC provides commitment lines under which it lends necessary funds up to a predetermined amount,which is within the borrowers’ financing needs for the projects and up to the agreed maximum to lend, uponborrowers’ request, provided that the request meets terms and conditions for disbursement prescribed in the Loan
Agreement. The total balance of unused commitment lines as of March 31, 2007 and 2006 are ¥3,656,740 million($30,976 million) and ¥3,667,762 million respectively.

(i)With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt("Bankrupt borrowers and Substantially bankrupt borrowers"), the residual booked amount of the claims after
deduction of the amount which is deemed collectible through the disposal of collateral or the execution of guarantees
in written-off against the respective claims. There were no corresponding amounts as of March 31, 2007 and 2006.

6. Miscellaneous assets
Miscellaneous assets as of March 31, 2007 and 2006 were as follows:
March 31, 2007
（In millionsof yen）¥
Prepaid expenses
Accrued income (a)Other (b)¥March 31, 2006
（In millionsof yen）¥

493
61,599819
62,913¥

March 31, 2007
(In millions of
U. S. dollars)$

512
68,427
1,935
70,876

$

4
522
7
533

(Notes)(a)"Accrued income" includes ¥61,391 million ($520 million) and ¥67,903 million of accrued interest on loans and other(b)as of March 31, 2007 and 2006, respectively.
"Other" includes ¥0 million ($0 million) of suspense payments and other as of March 31, 2007 and ¥52 million ofsuspense payments and other as of March 31, 2006.

7. Fixed assets (Premises and equipment)
Fixed assets（Premises and equipment）as of March 31, 2007 and 2006 were as follows:
March 31, 2007
（In millionsof yen）

March 31, 2006
（In millionsof yen）¥
Tangible fixed assets
Land
Buildings
Equipment
Construction in progress
Total
Less-accumulated depreciation
Net book value

Intangible fixed assets
Software
Guarantee deposit
Other
Total
Less-accumulated depreciation
Net book value

¥
¥

¥
2,994
6,985
1,250
27
11,258
4,655
6,603

¥

¥
¥

March 31, 2007
(In millions of
U. S. dollars)
$

2,994
7,271
1,213
221
11,701
5,048
6,653

¥
¥

¥
2,179
0
2,179
845
1,334

$
$

25
59
11
0
95
39
56

$
2,011
318
0
2,329
488
1,841

¥
¥

$
$

18
0
18
7
11

8. Deferred charges on bonds and notes
Deferred charges on bonds and notes as of March 31, 2007 and 2006 were as follows:
March 31, 2007
（In millionsof yen）

March 31, 2006
（In millionsof yen）¥
Deferred discounts on bonds and notes
Total

March 31, 2007
(In millions of
U. S. dollars)

¥
-

¥

$
3
3

¥

-

$

9. Allowance for possible loan losses
Allowance for possible loan losses as of March 31, 2007 and 2006 were as follows:
March 31, 2007
（In millionsof yen）¥

March 31, 2006
（In millionsof yen）¥

48,86954,028-General allowance for possible loan losses
Specific allowance for possible loan losses
Allowance for possible losses on specificoverseas loans¥

102,897

March 31, 2007
(In millions of
U. S. dollars)$

45,51879,638¥125,156

414
458
$

872

10. Bonds and notes
Bonds and notes as of March 31, 2007 and 2006 were as follows:

Description ofbonds and notes

Date ofissuance

Overseas
Economic
Cooperation Fund
Bonds guaranteedby Japanese govt.
9

November
1996

Currency
and amounts
March 31, 2007
(In millions)
JPY

Interest rate(%)

Maturitydate

2.9

November
2006-

March 31,
2007
（In millionsof yen）¥-

March 31,
2006
（In millionsof yen）¥
10,000March 31,
2007
(In millions of
U. S. dollars)
$
-

¥

¥

$

-

10,000

Scheduled redemptions of bonds and notes for each of the next five years as of March 31, 2007 are as follows:
In millions of yen

In millions of U.S. dollars¥$

Fiscal year 2007
2008
2009
2010
2011

-

-

11. Borrowings
Borrowings as of March 31, 2007 and 2006 were as follows:
Averageinterestrate

Due date of
repayment

Long-term borrowings
Borrowings from theGovernment Fund for Fiscal
Investment and Loan Program

1.79

Borrowings from theGovernment Post Office Life
Insurance Fund

1.85

March 31, 2007
（In millionsof yen）¥

March 31, 2006
（In millionsof yen）¥

March 31, 2007
(In millions of
U. S. dollars)$

3,687,708

3,978,612

31,23927,09541,608229

March 2008October 2021¥

3,714,803¥

4,020,220

Long-term borrowings with maturities for the next five years as of March 31, 2007 were as follows:
In millions of yen¥
Fiscal year 2007
2008
2009
2010
2011

In millions of U.S. dollars$

384,366
413,141
430,199
420,196373,762

3,256
3,500
3,644
3,559
3,166

$

31,468-

12. Miscellaneous liabilities
Miscellaneous liabilities as of March 31, 2007 and 2006 were as follows:
March 31, 2007
（In millionsof yen）¥
Accrued expenses (a)Other (b)March 31, 2006
（In millionsof yen）¥

March 31, 2007
(In millions of
U. S. dollars)$

13,991
113
14,105

16,113
1,031
17,145

119
1
120

¥
¥
$
(Notes)(a)"Accrued expenses" includes ¥13,633 million ($115 million) of accrued interest on borrowings and other as of March
31, 2007 (March 31, 2006: ¥15,938 million, and ¥8 million of accrued interest on bonds and notes).
(b)"Other" includes ¥113 million ($1 million) of suspense receipts as of March 31, 2007 (March 31, 2006: ¥1,031
million).

13. Employee retirement benefits
JBIC has a defined benefit pension plan comprising of a welfare pension fund plan and lump-sum severance indemnity
plan.
(a)

The funded status of the pension plans

Disposition

Projected benefit obligation
Fair value of plans’ assets
Unfunded pension obligation
Unrecognized net obligation at transition
Unrecognized net actuarial gains/losses
Unrecognized prior service cost
Net amount recognized on the balance sheet(A)(B)(C) = (A) + (B)
(D)
(E)
(F)

Prepaid pension cost
Allowance for employee retirement benefits(H)(G) – (H)

(Note)(b)(G) = (C) + (D)+ (E) + (F)March 31, 2007
（In millionsof yen）¥(8,898)2,750(6,148)(6,148)¥(6,148)March 31, 2006
（In millionsof yen）¥(8,824)2,564(6,259)(6,259)¥(6,259)March 31, 2007
(In millions of
U. S. dollars)
$
(75)
23
(52)
(52)

$

(52)

The projected benefit obligation above includes a portion in which the pension fund acts for the government
welfare program.

Component of pension cost

Disposition

Service cost
Interest cost
Expected return on plans’ assets
Amortization of prior service cost
Amortization of net actuarial gains/losses
Amortization of net obligation at transition
Other costs
Net pension cost

March 31, 2007
（In millionsof yen）
¥
335
175
(38)
(14)
¥
487

March 31, 2006
March 31, 2007
（In millions(In millions of
U. S. dollars)of yen）
¥
$
357
3
1
173
(0)
(32)
(345)
(0)
¥
152 $
4

(c)

Principal assumptions madeMarch 31, 2007

Discount rate
Expected rate of return on plan assets

March 31, 2006
2.0%
1.5%

Method of attributing the projected benefits toperiods of services
Amortization period of prior service costs
Amortization period of actuarial gains/losses

2.0%
1.5%

Straight-line basis

Straight-line basis

Gains/losses are charged
to net income for the year

Gains/losses are charged
to net income for the year--

Amortization period of net obligation at transition

14. Assets pledged as collateral
There were no assets pledged as collateral as of March 31, 2007 and 2006.

15. Grant from general accountIn accordance with the "Changes of the Debt Relief Method" announced by the Japanese government on December 10,
2002, JBIC reported an extraordinary loss ("ODA-loan related losses") for the year ended March 31, 2003. Under thepolicy to maintain the financial soundness of JBIC, the government provided JBIC with a grant totaling ¥30 billion ($254
million) corresponding to "ODA-loan related losses" out of its general account for the fiscal year ended March 31,2007 and2006 respectively.

16. Reserve
Pursuant to Article 44 of the JBIC Law, the reserve attributable to the Overseas Economic Cooperation Account isprovided from net earnings on the Overseas Economic Cooperation Account.

17. Lease transactions
Lease transactions in the fiscal year ended March 31, 2007 and 2006 were as follows. There are no impairment losses
for the leased assets:(a)Finance lease transactions, excluding leases that ownership of the property are deemed to be substantiallytransferred to the lessee:
・Acquisition cost, accumulated depreciation and net balance of leased property as of March 31, 2007 and 2006 wereas follows:
March 31, 2007
（In millions ofyen）

Acquisition cost
Equipment
Other
Total
Accumulated depreciation
Equipment
Other
Total
Net balance
Equipment
Other
Total

March 31, 2006
（In millions ofyen）March 31, 2007
（In millions of
U.S. dollars）

¥

¥

$

¥

250
208
458 ¥

237
192
429 $

2
2
4

¥

180
135
316 ¥

120
96
216 $

2
1
3

¥

69
72
142 ¥

117
96
213 $

0
1
1

・Future lease payment obligations as of March 31, 2007 and 2006 are summarized below:
March 31, 2007
（In millions ofyen）¥
Due within 1 year
Due after 1 year
Total

March 31, 2006
（In millions of
yen）

¥
90
55
145 ¥

¥

March 31, 2007
（In millions of
U.S. dollars）

$
102
115
218 $

1
0
1

・Lease payment, depreciation expense and interest expense for the fiscal year ended March 31, 2007 and 2006 are as
follows:
March 31, 2007
（In millions ofyen）¥March 31, 2006
（In millions ofyen）March 31, 2007
（In millions of
U.S. dollars）¥

Lease payment
Depreciation expense
Interest expense

$

108
103
3

107
102
5

1
1
0

・Depreciation expense is calculated using the straight-line method over the useful economic life of the respective
leased assets with zero residual value.
・The difference between total lease payments and the acquisition cost of leased assets is debited to effective interest
expense, and is allocated to each fiscal year using the interest method.
(b)

Operating lease transactions:・Future lease payment obligations as of March 31, 2007 and 2006 are summarized below:
March 31, 2007
（In millions ofyen）¥

Due within 1 year
Due after 1 year
Total

¥

March 31, 2006
（In millions of
yen）
¥
1
1 ¥

18. Derivative transactions
There were no derivative transactions in the fiscal year ended March 31, 2007 and 2006.

19. Market value of securities
Notes to market value of securities as March 31, 2007 are as follows:(a)

Trading securities
Not applicable(b)

Held-to-maturity debt securities with market value
Not applicable(c)

Available-for-sale securities with market value
Not applicable(d)

Held-to-maturity debt securities soldNot applicable

March 31, 2007
（In millions of
U.S. dollars）
$
2
0
3 $

0
0

(e)

Available-for-sale securities soldMarch 31, 2007

March 31, 2007
（In millions of
U.S. dollars)（In millions of yen）¥
Sales amount
Gains on sales
Losses on sales
(f)

$
5,000
-

42
-

Held-to maturity debt securities and available-for-sale securities whose market value are not readily determinable
were as follows:
March 31, 2007

March 31, 2007
（In millions of
U.S. dollars)（In millions of yen）¥
Held-to-maturity debt securities
Unlisted foreign securities
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter
Unlisted foreign equities
Other unlisted Japanese securities
Other unlisted foreign securities
Total

$
-

¥

-

107,181814
1,279
109,275 $

908
7
11
926

(g)

Change in classification of securities
Not applicable(h)

Redemption schedule of available-for-sale securities with maturity and held-to maturity debt securities
Not applicable(i)

Equity securities of subsidiaries and affiliates with market value
Not applicable(j)

Money held in trust
Not applicable(k)

Net unrealized gain (loss) on available-for-sale securities
Not applicable
Notes to market value of securities as March 31, 2006 are as follows:(a)

Trading securities
Not applicable(b)

Held-to-maturity debt securities with market value
Not applicable(c)

Available-for-sale securities with market value
Not applicable(d)

Held-to-maturity debt securities soldNot applicable(e)

Available-for-sale securities soldMarch 31, 2006

March 31, 2006
（In millions of
U.S. dollars)（In millions of yen）¥
Sales amount
Gains on sales
Losses on sales

$
128
53
-

1
0
-

(f)

Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable
are as follows:
March 31, 2006
（In millions of yen）¥

Held-to-maturity debt securities
Unlisted foreign securities
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter
Unlisted foreign equities
Other unlisted Japanese securities
Other unlisted foreign securities
Total

-

¥

115,804
2,053
1,277
119,135(g)

Change in classification of securities
Not applicable(h)

Redemption schedule of available-for-sale securities with maturity and held-to maturity debt securities
Not applicable(i)

Equity securities of subsidiaries and affiliates with market value
Not applicable(j)

Money held in trust
Not applicable(k)

Net unrealized gain (loss) on available-for-sale securities
Not applicable